Impact of technological changes and economic liberalization on agricultural labor employment and Productivity

Soliman, Ibrahim and Ewaida, Osama (1996): Impact of technological changes and economic liberalization on agricultural labor employment and Productivity. Published in: CONTEMPORARY EGYPT Quarterly Annual Journal Issued by Egyptian Association for political economy, statistics And legislation Cairo , Vol. Year 8, No. No. 445, (July 1997): pp. 3-18.

Abstract

Egypt has passed dramatic economic changes over the last two decades. Such program has different impacts on agricultural sector performance, including the mechanization, expansion and substitutability for human labor. Therefore the objectives of this study are to assess the impacts of technological changes and economic liberalization on agricultural labor employment and Productivity. The analytical procedure is the estimation of crop production function for rice before and after the economic reform application in agricultural sector. The study used two field survey data in two sucessive periods conducted in "Sharkia Governorate". It was concluded that the optimum allocation of inputs for rice production implied to decrease the human labor use on farms, even though, under the export border price of rice. It means that such major crop in Egypt as a case study of the agricultural sector can not provide a feasible employment opportunity for human labor. To reach amaximum income from such agricultural activities a less labor intensity should be used. Positive analysis approach showed that the employment of human labor has decreased by almost one-fourth due to all technological changes and economic reform policies practiced over the last decade. The normative approach analysis (least cost combination of inputs), showed that the human labor employment should be decreased by about two-thirds, in order to maximize income. 4 In order to maintain agriculture growing at an economic competitive performance, all economic criteria, derived from the production function analysis in this study showed that the growth in production and maximization of income must rely upon a package of physical and biological technologies (new varieties, fertilizers and mechanization of farm operations). Rural development programs and economic development plans should create employment opportunities for the excess agriculture labor –beyond the economic density. Such opportunities should be either in agricultural related industries, non-agricultural small industries in villages or other economic activities in rural towns.

• Item Type: MPRA Paper
• Language: English
• Keywords: Agricultural Mechanization; Production Function Model; Technological changes; Economic Efficiency; The least cost Technological Package
• Subjects: J - Labor and Demographic Economics > J0 - General > J08 - Labor Economics Policies; C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General > C13 - Estimation: General; C - Mathematical and Quantitative Methods > C6 - Mathematical Methods ; Programming Models ; Mathematical and Simulation Modeling > C61 - Optimization Techniques ; Programming Models ; Dynamic Analysis

References

Baker, Randolph and Herdt, Robert W. (1978) "Equity implications of Technology Changes" Interpretive Analysis of Selected Papers from Changes in Rice Farming in selected Areas of Asia Los-Banos International Rice research Institute.

Dillon, John (1977) "The Analysis of response in Crop and Livestock Production" Second edition, Pergamom Press Inc, Maxwell House, Fairview Park Elmsford, New York. USA.

Frisch, Ranger (1965) "Theory of Production" Translated from the Norwegian, by (R.I. Christopherson, D. Reidel Publishing Company. Dordrecht, Holland. PP. 30-38.

Heady, E. O. (1978) "Economics of Agricultural Production and Resource Use". Prentice Hall, New York. USA, PP. 790-800.

Imam, Shawky & Ibrahim Soliman (1982) "An Economic Study for Wheat production Activity in Egyptian Agriculture" The Proceedings of the 7th International Congress of Statistics, Computer Sciences, Social and Demographic Research, Computing Center. Ain Shams University, Abbassia, Cairo, Egypt.

Soliman, Ibrahim & Megahed, Miassa (1994) "Economic Efficiency for Operating the Agricultural Tractor" Proceedings of the Fifth Conference of Agricultural Development Research, 20-22 December published in Annals of Agricultural Science, by Ain Shams University, Faculty of Agriculture. Cairo. Egypt.

Soliman, Ibrahim (1985) "An analysis of the Buffalo milk response under the Conventional Egyptian Farming System" Proceedings of the 10th Conference of Statistics, Computer Sciences, Social and Demographic Research, Vol. 3. P. 91-106 Computer Center, Ain Shams University, Cairo, Egypt.

Soliman, Ibrahim (1992) "Agricultural Mechanization and Economic Efficiency of Agricultural Production in Egypt" An Invited Paper to The 92-lnternational Conference of Agricultural Engineering, Published in the conference proceedings, Vol. 1, Beijing Agricultural Engineering University. Beijing, P.R. China.

Soliman, Ibrahim and El-Shenawy, Mohammed (1985) "Livestock Working Power in Egyptian Agriculture". 18-Annual Conference of Statistics, Computer Sciences, Operation Research and Mathematics Vol. 18 No. 1 Institute of Statistical Studies and Research. Cairo University, Giza, Egypt.

Soliman, Ibrahim, Al-Zanati, M., Gaber, M. and Ibrahim, A. (1995) "Impacts of Techno-Economic Changes on Input-Output relations for Wheat crop in Egypt, Journal of Agricultural Economics, Vol. 4, no. 2, pp. 177-786, Published by Egyptian Journal of Agricultural Economics. Agricultural Club, Cairo, Dokki, Egypt.

Soliman, Ibrahim, Gaber, M., A. Ibrahim (1994a) "Evaluation of Investment in Non-Conventional Agricultural Machinery under Private and State management" Journal of Agricultural Research, Faculty of Agriculture, Minia University, Minia, Egypt.

Soliman, Ibrahim, Gaber, M. and Ibrahim, A. (1994b) "Socio-Economic impacts of Non-Conventional mechanization for wheat Crop: A case study in Kafr Al Sheikh Governorate" Journal of Agricultural Research of Faculty of Agriculture, Minia University. Minia, Egypt.

Soliman, Ibrahim, Gaber,M.and Ibrahim, A. (1994c) "Farm Production for Wheat under Non-Conventional Mechanization System" Proceedings of the Fifth Conference of Agricultural Development Research, 20-22 December Published in Annals of Agricultural Science, by Ain Shams University, Faculty of Agriculture. Cairo Egypt.

Soliman, Ibrahim, Gaber, M.and Ibrahim, A. (1994d) 'Socio-Economic Impacts of Biological and Mechanical Technological package Applied for Sugarcane Development : A Case study in Minia Governorate" Proceedings of the Fifth Conference of Agricultural Development Research. 20-22 December Published in Annals of Agricultural Science, by Ain Shams University, Faculty of Agriculture. Cairo. Egypt.

Spenser, Dustan & Byerlee, Derek (1976) "Technical Change, labor Use and Small Farmer Development: Evidence from Sierra Leone" American Journal of Agricultural Economics. Vol. 58 PP. 874-80